I’ve been thinking about Monday’s discussion regarding the implications of population age on inflation, can anyone please comment on and/or critique the following thoughts:
1. From what I understand from Mises and Rothbard, inflation is the expansion of the money supply and should be measured and thought of as such, not the rise in prices, which, as discussed, is impossible to measure because of the elastic tape measure problem mentioned by Saifedean. The age of any population does not have anything to do with how much currency the government is printing.
2. Taking point 1 into account, the discussion we should be having is: “The Impact of an ageing populace on productivity.” As a person gets older, he\she becomes more productive up until a certain age, then slowly becomes less productive until you die. On the other hand, the older a person is, the more time he/she has had to accumulate capital and thus become more productive. These two should “even each other out” to a certain extend. All other variables are relative to a particular group/country/population and cannot be theorised about because there are too many external factors to take into account(education, health, resources, etc).
I think that the accumulation of capital by these elders works in synergy with younger peoples’ labor. I don’t remember if the thought experiment assumed that a population aged and no young humans were “added”